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Goldman Sachs Asset Management and DWS in Germany are preparing to bid on NN Group’s investment management division as industry integration accelerates.
Dutch insurance company Said in april He was considering selling NN Investment Partners, which has assets under management of 300 billion euros.
The final binding offer deadline is Monday. GSAM and Frankfurt-based DWS, which have over $ 2 trillion in assets under scrutiny, are still preparing for the sale process and bidding, people familiar with the situation say.
According to one, the transaction price is about 1.4 billion euros. NN Group, GSAM and DWS declined to comment.
UBS Asset Management, Janus Henderson, and Prudential Financial, a US insurer, are one of the companies that have previously registered interest. All three declined to comment.
Investment management companies around the world have started Mergers and acquisitions It is designed to open up fast-growing markets such as passive investment, personal assets and ESG, open up new distribution channels while protecting profits from rising costs and lower fees.
Vincent Boonie, Senior Managing Director of Fenture Cheer Advisory, a financial services specialist investment bank, said:
“Especially with undifferentiated plain vanilla products, it’s complicated to grow and it’s very difficult to do a profitable business.”
Asoka Woehrmann, CEO of Deutsche Bank’s majority-owned DWS, told shareholders at the € 820 billion annual shareholders’ meeting last month that he wanted to be an “active player” in industry integration. We are looking for a larger scale for rival Amundi to compete for supremacy in Europe.
Insurers, on the other hand, are subject to long-term low interest rates and high capital requirements. Solvency II The rules encourage the group to consider where to allocate capital, Mr. Bunnie said. “For many of them, the subscale wealth management department is no longer a core activity and will probably sell more.”
Last year, Hague-based NN Group was pressured by activist hedge fund Elliott Management to improve returns and streamline operations. In April, it is considering options such as mergers, joint ventures, and partial sales of divisions.
NN Investment Partners has approximately 950 employees. Of the € 300 billion in assets under management, two-thirds are managed on behalf of the insurance parent and the remaining one-third are invested in external investors.
The range of funds in this sector covers fixed income, equity, multi-asset and alternative investment strategies. We have established a solid position in ESG investment, especially in areas such as green bonds, impact equity and sustainable equity.
Additional report by Ian Smith in London
Goldman and DWS prepare bids for NN investment partners
Source link Goldman and DWS prepare bids for NN investment partners